As of 5/28/25, Asset Value Investors (AVI) owned 14.13% (up 1.32%) of Synchro, right after increasing their holdings by 1.5% to 12.81% on 5/23.

As of 5/15/25, LIM Advisors (LIM) raised their Synchro holdings to 13.48%

What are these two savvy investors seeing in this food service matching service provider?  With FY3/26 PE at 32X vs. OP CAGR 16%, Synchro is not a cheap stock.

Maybe—-Their no debts balance sheet with cash 30% of its market cap? High margin, Asset light, and defendable biz model? A big TAM? Well-thought-out mid-term plan? Benefits from robust inbound tourism?

One factor that intrigues me is the company’s slower OP growth vs. sales: Sales CAGR from FY3/17 (IPO year) through FY3/25 was 18%, but OP CAGR was 11.8% due to growth investments including M&As. Once the growth stage shifts to the benefit-repeating phase, the OP growth should outpace sales growth  This may be the goal of LIM and AVI.

The simple comparison between Synchro and the more established Kakaku.com highlights a higher profitability of Kakaku.com- OP margin: Synchro 27.7% vs. Kakaku 37%, ROE Synchro 10.7% vs. Kakaku 30.7%.  By implementing the right strategies with precise execution and scaling operations effectively, Synchro has the potential to significantly enhance profitability.

In the report to my clients, I provide a detailed analysis(guess?) of LIM and AVI’s perspective. Please become my client, so that you can question my rationale!